At-Fault Driver Minimum Coverage Illinois

Last Updated: October 25, 2026

For a policy or bond referred to in 625 ILCS 5/7-202, section 7-203 sets limits of not less than $25,000 for bodily injury to or death of one person in one crash, not less than $50,000 for bodily injury to or death of 2 or more persons in one crash, and not less than $20,000 for injury to or destruction of property of others in one crash. Amounts above the at-fault driver’s liability limit are not paid by that liability policy. You may also sue the at-fault driver personally for the remaining damages.

625 ILCS 5/7-601(a) says no person shall operate, register, or maintain registration of, and no owner shall permit another person to operate, register, or maintain registration of, a motor vehicle designed to be used on a public highway in this State unless the motor vehicle is covered by a liability insurance policy in amounts no less than the section 7-203 minimums for bodily injury or death and for destruction of property. Subsection (b) lists exemptions. Section 7-203, for a policy or bond referred to in section 7-202, sets a limit of not less than $25,000 because of bodily injury to or death of any one person in any one motor vehicle crash and, subject to that one-person limit, not less than $50,000 because of bodily injury to or death of 2 or more persons in any one crash, and, if the crash has resulted in injury to or destruction of property, not less than $20,000 because of injury to or destruction of property of others in any one crash. The section 7-601 text used here is the text before P.A. 104-854. A later text is effective January 1, 2027. If you are seriously hurt in a crash and the at-fault driver carries only the minimum, their coverage may not come close to covering your medical bills, let alone lost wages, pain and suffering, and long-term care costs.

This is where your underinsured motorist (UIM) coverage becomes critical.

How Underinsured Motorist Coverage Works

UIM coverage is governed by 215 ILCS 5/143a-2(4). An underinsured motor vehicle is one for which the sum of the bodily-injury liability limits, bonds, or other security Illinois law requires, applicable to the driver or other legally responsible person and to the vehicle, is less than the underinsured coverage limit. The insurer’s limit is that coverage less the amounts actually recovered under the applicable bodily-injury policies, bonds, or other security. The same subsection requires underinsured coverage equal to the uninsured coverage where that uninsured coverage exceeds the section 7-203 limits, for a motor vehicle designed for use on public highways and required to be registered in this State. Section 143a-2(1) requires uninsured coverage equal to the insured’s bodily-injury liability limits unless rejected as paragraph (2) provides. Paragraph (2) allows a named insured or applicant to reject additional uninsured coverage above the section 7-203 limits in writing. That written rejection is not a rejection of the underinsured coverage required by paragraph (4).

Here is a simplified example:

You suffer $150,000 in damages from a crash
The at-fault driver carries $25,000 in liability coverage (the Illinois minimum)
You carry $100,000 in UIM coverage
The at-fault driver’s insurer pays $25,000
Your UIM coverage can pay up to an additional $75,000 (the difference between your $100,000 UIM limit and the $25,000 already received)

Section 143a-2(5) says nothing in that section prohibits an insurer from setting policy terms that, when coverage under the section is available under more than one policy or provision, limit recovery to the higher of the applicable limits and do not increase the limits because multiple motor vehicles are covered under the same policy. The closing sentence of 215 ILCS 5/143a(3) says nothing in that section may be construed to prevent an insurer from extending coverage under terms and conditions more favorable to its insureds than the section requires. Those sentences do not read a particular policy.

Why Minimum Coverage Is So Dangerous

A $25,000 policy limit can be exhausted by a single emergency room visit. Consider the costs of a moderate-to-serious car accident injury:

Emergency room visit: $5,000 to $20,000
Surgery: $20,000 to $100,000+
Physical therapy (12 weeks): $5,000 to $15,000
Lost wages (3 months): $10,000 to $30,000
Pain and suffering: Varies widely

A broken leg from a car accident can easily generate $75,000 or more in economic damages alone. If the driver who hit you carries only $25,000, you are left with a $50,000+ gap that UIM coverage is designed to fill.

Steps to Take When the At-Fault Driver Has Minimum Coverage

Confirm the at-fault driver’s limits. Your attorney can send a liability limits demand letter to the other driver’s insurer to verify coverage amounts.
Collect the liability limits. In many cases, accepting the at-fault driver’s full policy limits is appropriate. But consult an attorney first, accepting too early or without proper documentation can affect your UIM claim.
Notify your own insurer. Before settling with the at-fault driver’s insurer, notify your UIM carrier. Many policies require this to preserve your UIM rights.
File a UIM claim. Once the liability payment is resolved, file a UIM claim with your own insurer for the remaining damages.
Prepare for negotiation or arbitration. UIM claims are often disputed. If your insurer undervalues your claim, arbitration is the typical dispute resolution mechanism.

Can Stacking Increase Your Recovery?

215 ILCS 5/143a(1) says the limits for any coverage for any vehicle under the policy may not be aggregated with similar coverage, from the same insurer or another insurer, applying to other motor vehicles, for bodily injury or death in one crash. The closing sentence of section 143a(3) says nothing in that section may be construed to prevent an insurer from extending coverage under terms and conditions more favorable to its insureds than the section requires. Section 143a-2(5) permits policy terms providing that the limits are not increased because multiple motor vehicles are covered under the same policy.

Protect Yourself Now

The best time to prepare for an underinsured driver crash is before it happens. Review your auto policy and make sure you carry UIM limits that reflect the true cost of a serious injury, not just the minimum. If you have already been injured and the at-fault driver is underinsured, contact Parker & Parker for a free consultation. We will identify every source of coverage available to you.

Frequently Asked Questions

Do I have to accept the at-fault driver’s policy limits before filing a UIM claim?

Usually, yes, but you must notify your UIM carrier before accepting the liability payment. Failure to do so can jeopardize your UIM claim.

What if my UIM limits are the same as the at-fault driver’s liability limits?

Under section 143a-2(4), the at-fault vehicle is underinsured when the sum of the bodily-injury liability limits, bonds, or other security Illinois law requires, applicable to the driver or other legally responsible person and to the vehicle, is less than the underinsured coverage limit. If that sum is not less than the underinsured limit, the definition is not met.

Can I sue the at-fault driver personally for the difference?

You can, but collecting a judgment against an individual who carries only minimum insurance is often difficult. UIM coverage is typically a more practical path to recovery.

Dealing with injuries after a car crash can feel overwhelming. Our Peoria personal injury team can guide you through every step of the legal process.

Need a lawyer? This article is part of our Peoria Car Accident Lawyer practice area. Call Parker & Parker at 309-673-0069 for a free consultation.

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